Abstract
According to standard finance, individual is characterized by perfect self-interest and perfect rationality. However, research in the field of behavioural finance has shown that valueexpressive characteristics matter in investor choices, and investors are susceptible to a broad set of cognitive errors in their decisions. This study reports the empirical results of a survey addressed to 300 Portuguese subjects, whose purpose is to analyze if investor behavior is affected by psychological traits documented by the behavioral finance school. The major conclusion is that risk aversion is a pervasive characteristic of investor behavior. We also find some evidence for patriotism, loss aversion and overconfidence. Globally, the results indicate that investor’s attitudes and decisions are influenced by psychological factors as documented by the behavioral finance school. Keywords: Behavioural Finance, Investor Behaviour, Financial Market
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